For immediate release

Hospital CEO Turnover Rate Increases

CHICAGO, March 10, 2014—Hospital CEO turnover increased in 2013, tracking at 20 percent, according to a recent report from the American College of Healthcare Executives. This is the highest rate reported since ACHE began analyzing these numbers in 1981. The turnover rate in 2012 was 17 percent, and in 2011 and 2012 it was 16 percent. The annual rate has fluctuated between 14 and 18 percent in the decade prior to 2013.

“The increase in the turnover rate may be indicative of a combination of factors, including an increased number of baby boomers seeking retirement, the emerging trend toward consolidation in our industry and the complexity and amount of change going on in healthcare today,” said Deborah J. Bowen, FACHE, CAE, president and CEO of ACHE. “The increase in the rate reinforces the need for healthcare leaders to work with their boards to ensure appropriate succession plans are in place.”

ACHE's CEO turnover rates are based on changes in an organization's chief executive officer as reported to the American Hospital Association.

American College of Healthcare Executives
Hospital CEO Turnover*

YEAR

ADJUSTED ** (percent)

NUMBER OF HOSPITALS

2013

20

4,546

2012

17

4,555

2011

16

4,542

2010

16

4,567

2009

18

4,582

2008

14

4,520

2007

15

4,496

2006

15

4,546

2005

14

4,512

2004

16

4,566

2003

14

4,569

2002

14

4602

2001

15

4,624

2000

17

4,689

1999

18

4,744

1998

17

4,780

1997

16

4,842

1996

16

4,928

1995

17

4,940

1994

14

5,045

1993

14

5,030

1992

15

5,198

1991

17

5,294

1990

13

5,398

1989

16

5,454

1988

18

5,526

1987

18

5,583

1986

17

5,626

1985

16

5,651

1984

15

5,665

1983

13

5,672

1982

14

5,678

1981

14

5,687

* Short term, general medical and surgical and nonfederal hospitals.

** Based on a universal telephone study in 1990, we reduced the total turnover for the years 1981-1997 by 14.2 percent due to incorrect reporting of retained CEOs and by 9.9 percent due to the replacement of interim or acting CEOs. The total reduction is 24.1 percent. In 1998, a sample survey of 146 hospitals showed that the appropriate deflator should be 18.6 percent, which was applied to the 1998-2002 rates. In 2004, this deflator was adjusted to 18.8 percent on the basis of a survey of a sample of 150 hospitals; this was applied to the 2003-2007 rates. For the 2008 calendar year, on the basis of a survey of 300 hospitals, a new deflator of 13.04 percent was computed, which was used for 2009 and 2010 as well.

Beginning in the 2011 figures, our calculations exclude known interim CEOs, rather than correcting for them using the deflator. A deflator of 2.10 percent, correcting for overlooked interim CEOs and misidentified turnovers, was computed on the basis of a 2012 survey of 300 hospitals and applied to the 2012 and 2013 data.

American College of Healthcare Executives—Feb. 21, 2014
Annual CEO Turnover by State—Rates adjusted for states with more than 23 turnoversNonfederal, Short-Term, General Medical/Surgical Hospitals—Calendar Year 2013

Rank

State

Adjusted CEO Turnover Pct*

(High-turnover states)

1

ALASKA

37

2

OKLAHOMA

33†

3

ARKANSAS

30

4

PUERTO RICO

30

5

VIRGINIA

29

6

LOUISIANA

27†

7

FLORIDA

27†

8

MASSACHUSETTS

26

9

ALABAMA

25

10

KENTUCKY

25†

11

SOUTH CAROLINA

25

12

TENNESSEE

24†

13

MISSOURI

24†

14-15

NEW MEXICO

23

14-15

ARIZONA

23

16

MISSISSIPPI

23

17

NEW YORK

21†

(Medium-turnover states)

18

NORTH CAROLINA

21

19

ILLINOIS

21†

20-21

MICHIGAN

21†

20-21

CONNECTICUT

21

22

GEORGIA

20†

23-24

DELAWARE

20

23-24

HAWAII

20

25

CALIFORNIA

20†

26

TEXAS

19†

27

WASHINGTON

19

28

IDAHO

18

29

KANSAS

18

30

COLORADO

18

31

OHIO

17†

32

NEW HAMPSHIRE

16

33

MARYLAND

16

34-35

NORTH DAKOTA

15

33-35

WYOMING

15

(Low-turnover states)

36

IOWA

15

37-38

INDIANA

15

37-38

NEVADA

15

39

MINNESOTA

15

40-41

DIST. OF COLUMBIA

14

40-41

UTAH

14

42

PENNSYLVANIA

14

43

WISCONSIN

14

44

OREGON

13

45

MAINE

11

46

MONTANA

11

47

SOUTH DAKOTA

11

48

NEBRASKA

11

49

WEST VIRGINIA

10

50

NEW JERSEY

10

51-52

VERMONT

0

51-52

RHODE ISLAND

0

US TOTAL (50 states, DC, Puerto Rico)

20

* This table adjusts the turnover rate downward in states with more than 23 turnovers to account for unrecorded interim and acting CEOs who are intentionally assigned to their posts for a short period.

† More than 23 turnovers—adjusted rate

About the American College of Healthcare Executives

The American College of Healthcare Executives is an international professional society of more than 40,000 healthcare executives who lead hospitals, healthcare systems and other healthcare organizations. ACHE offers its prestigious FACHE® credential, signifying board certification in healthcare management. ACHE's established network of 80 chapters provides access to networking, education and career development at the local level. In addition, ACHE is known for its magazine, Healthcare Executive, and its career development and public policy programs. Through such efforts, ACHE works toward its goal of being the premier professional society for healthcare executives dedicated to improving healthcare delivery. The Foundation of the American College of Healthcare Executives was established to further advance healthcare management excellence through education and research. The Foundation of ACHE is known for its educational programs—including the annual Congress on Healthcare Leadership, which draws more than 4,000 participants—and groundbreaking research. Its publishing division, Health Administration Press, is one of the largest publishers of books and journals on health services management including textbooks for college and university courses.